Business Law: Sources, Government Role, Impacts, and Solutions

This study explores the different sources of law in the English legal system, the role of government in law making, and the impacts of employment, company, and contract law on businesses. It also provides legal solutions for resolving disputes and identifies sources for legal advice and support.

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different sources of law used in English legal system................................................................3
Role of government in law making as well as effectiveness of the legal system........................4
TASK 2............................................................................................................................................5
Different types of businesses, their critical analysis and their formation....................................5
Impacts of employment, company and contract law on business................................................6
Ways of managing and funding of business organization...........................................................6
TASK 3............................................................................................................................................7
Legal solutions for solving range of disputes and sources of getting legal advice and support. .7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business law refers the body of law which governs businesses and considered as a branch
of civil law whose responsibility is to deal private as well as public law (Miller, 2016). This
study is going to show importance of partnership and different other types of businesses in order
to make final decision about selecting the type. It will also discuss different ways of funding and
managing for different types of businesses.
TASK 1
Different sources of law used in English legal system
In the context of English law, it can be said that it refers the common law of England and
Wales that mainly focuses on criminal and civil law. UK is being divided into 3 jurisdiction such
as Scotland, Northern Ireland and England and Wales. Each legal system or branch has its own
processes, judges as well as courts. Laws plays an important role because it helps people in
governing their behaviour within a civilized society. These legal laws may be changed by human
interventions. Sources are law can be defined the origin of laws or rules which need to be
followed by state in order to govern their territory. There are mainly 2 sources of law which is
defined as primary and secondary (Thomas and McGourlay, 2017).
Some laws of primary sources includes:
1. Legislation: It consists of statues or Parliaments acts, statutory instruments etc.
2. Case law: It consists of decisions which are being made by the higher courts which are being
followed by other less senior courts. In this context it can also be said that it is called national
sources
Laws of secondary sources includes:
1. Textbooks as well as commentaries that are being written by legal writers
2. Opinions which legal experts make
3. Final decisions which courts make of other jurisdiction
All are being treated as persuasive and taken into account by the court while making out a
decision.
Equity: It is considered as the main source of law peculiar mainly to England and Wales that is
the main jurisdiction of the UK. It is a type of case law that prevails over common law. Some
achievements of this case law includes: charities, laws etc.
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Parliamentary conventions: This laws are not considered as strict laws but in the case of
breach, it may lead to breach of law. This law mainly focuses on governing relationship between
the house of commons and house of lords.
Customs: This type of laws are not being written in a normal way but practice can be defined or
explored to have existed for a long period.
So, it can be said that firm Archie Richie and Lawson Solicitors can make an effective
use of these sources and evaluate its effectiveness for providing legal advice.
Role of government in law making as well as effectiveness of the legal system
UK government plays an important role in making laws or rules in order to govern
territory. Government is one of the important group of people or people who perform functions
for running the country smoothly and effectively. It is being made when political party wins the
most seats and more seats than opponent part at a general election, takes charge of the
government. There are some steps of making a new law which is known as bill For making a bill
effectively it is important for house of parliament and Royal assent to agree on this bill before
becoming them acts of parliament which holds the main responsibility of making a law.
First reading: This step is known as official notice in which the new law or bill goes for
proposing. It also gives MPs time in order to more discuss and prepare it in an efficient manner.
Second reading: After completing and discussing in first reading, in second reading all
principles in these regards are considered on the floor of the house. After completing this process
small groups of MPs looked at this bill in order to examine it in a detailed and a systematic
manner (Partington, 2019).
Third reading: In this last step, bill or new law is debated and voting occurs. If the government
gets majority in the regards to the bill then that new law passed to the House of lords.
After getting passed of the bill through both houses then it is sent to the main department
or Queen for the Royal Assent who makes laws. The new law or bill then become an act of
parliament.
Effectiveness of legal system
Legal system plays an important role and it has several characteristics and perform
functions which shows its effectiveness such as:
 It examines all effects of legal system as well as property rights protection.
 Considering some macroeconomic as well as geographical controls.
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 All legal systems and property rights are being associated with inbound tourism in a
positive manner (Aluko and Azeez, 2019).
TASK 2
Different types of businesses, their critical analysis and their formation
Before thinking about starting own business as partners and by others' means, it is
important to evaluate effectiveness, advantages and disadvantages of each of the type of business
in order to become successful. There are different types of businesses whose analysis can help
James and Jordan in making the final decision about selecting the best type for starting up their
own business.
Partnership: It is a type of business which is being owned and run by 2 or more than 2
people who contribute resources as well as money into this entity. All generated profits and
losses are being divided as per their contributed amount and resources. Their are 2 types of
liability such as limited and unlimited. General partnership are type of limited liability.
Corporation: It is also other type of business which has a separate legal personality from
its owners. Ownership in this type is considered by shares of stock. Owners in this type has
limited liability with limited involvement in business operations (Daley and et.al., 2019).
It both may be limited or cooperative. There are some steps involved in the formation of both
types such as:
Partnership deed: It is an important part to be made as it consists of all basic and
important informations such as: the name as well as business place, all business activities, profit
sharing ratio and contribution of partners etc.
Stamp duty: Prepared partnership deed need to be executed by the payment for stamp
duty. After having signatures of all partners and witness with agreement deed shall be notarised.
Registration: This step is voluntarily.
Application for PAN: It is also important for both partners to apply for PAN to the
income tax department because this department identifies as whether partnership is different
from its all partners.
For forming corporation, people or owner requires to select the state and market place
where they want to incorporate. It mainly should be the state where company has its headquarter.
After that, company requires deciding about officers which should be at least 2 or 3 parties in
order to form a corporation.
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If we compare between partnership and corporation then it can be said that partnership is
better than corporation because it requires less paper works, legal requirements and easy to set up
than corporation. Dissolve of this type is also depended upon partners and the duration which
they have decided or due to the death of a partner. So, it can be suggested to James and Jordan to
start business as a partnership.
Impacts of employment, company and contract law on business
Employment law: Employment law has great impacts on business performance and its
growth as it is made only because of protecting the rights of employees in order to improve
employment relationship. So, it is important for employees to follow or comply all laws
otherwise, they have to pay costly employment tribunal claims. It can be said that it can affect
every aspects oh working environment such as rights regarding wages hiring, discrimination etc.
Overall it can be said that it protects employee rights and support them in every aspect.
Company law: Company law regulates incorporation of a company as the way of a
company of conducting its business activities. They also need to think about compliances which
they require making in order to maintain transparency. It has 2 main impacts such as wealth
creation and pricing mechanism for investors. This law also avoids conflicts of interest and tries
to keep a peaceful working environment (Schipani, Milliken and Dworkin, 2016).
Contract law: This law regulates ways of some legal entities such as partnership and
corporation execute contracts in order to avail services as well as maintaining documentation. It
protects both parties of contract in breach of law, increases a level of certainty in business
relations as well as give confidence that other need to do.
Ways of managing and funding of business organization
Different types of businesses like partnership and corporation have different ways of
funding as well as managing them. It is required to make needs and plan. Selection of funding
and managing depend upon the types and needs of partnership entity. Some ways of managing
and funding for partnership include:
Bootstrapping: For starting up a new business as a partnership, it is a common an effective way
of funding. As James and Jordan has creativity and business mind but they will require some
amount or fund, so they can analyse some sources and can make decision. It is called self
funding in which, partners decide that how much of money they already have or can arrange on
their own. It includes savings, retirement account funds etc.
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Business loan: If partners want to start a business to the large scale then they go to bank for a
loan in order to perform business activities. For taking a loan, they are required to communicate
and show all necessary documents such as: business plan, expected income which they will
generate for the next few years etc. Bank then look at experience of partners and all credentials
in order to make lending decision (Boudreau, Nwakpuda and Sauermann, 2019).
On the other hand, corporation type can make an effective use either debts or equity
capital in order to raise money. For debts capital, holders are required to charge business interest.
Whereas, equity holders depend on stock dividends for a return.
Comparison of partnership and corporation
 Partnership requires fewer obligations than corporation.
 Corporation has limited liability whereas, partnership may have unlimited liability.
 Corporation can raise capital in easiest manner or by selling shares.
 Partnership has more ability than corporation to make decision as all partners give
different views.
TASK 3
Legal solutions for solving range of disputes and sources of getting legal advice and support
Different types of cases have different types of solutions as per the law. For example: in
the case of Maxwell who is an art dealer and deal of rare paintings. He made a deal to Angelica
for £500 and for that Angelica deposited 10% in advance. But Maxwell negotiated to sell that
painting to another client for £900. Angelica does not want to lose that painting. So, in this case
it can be suggested and advised to her that she should follow contract law. As per the contract
law, an agreement between private parties create mutual obligations enforceable by law. It can
not be void and break if terms of agreement are illegal (Austen-Baker, 2017). But the agreement
made between Angelica and Maxwell is legal so, as per the contract law, she can get that
painting and file a case against maxwell.
On the other hand, in the case of Nicholas Jacob case who is an electrician married with 2
adult children is offered to move to London for another job given by Newcastle. He denied this
offer to move to London but Newcastle fired him. In this case it can be suggested to him that he
should follow guidelines of employment law. As per the employment law, employer cannot
dismiss employers unfairly as there should be a valid reason (Abdullah, 2017). In the case of
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Nicholas Jacob, there is no valid reason and as per the rules of employment law, he can get his
job again as well as file a case against the company.
In the case of Johnson, who has been working for a construction company for the last 6
months. Due to unfixed railing, he fell off which injured his back and knee. He claims on the
company and company said that he put a notice on the ground floor that be aware as railing is not
permanently fixed and denied to compensate. In this case, it can be recommended to Johnson
that he should follow health and safety law (Hale and Booth, 2019). As per the health and safety
law, there is a responsibility of an organization to provide safety to its all workers and provide
them a safe working environment. So, as per this law, he can claim on his company.
CONCLUSION
From the above study, it has been summarized that business law and different sources of
law played an important role as it supports people to make effective agreements and businesses
plan. Different types of businesses have different ways of formation, managing and funding
which also help them in selecting the best type as per the rules and legal entity.
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REFERENCES
Books and journals
Abdullah, S., 2017. To what extent will Brexit have an impact on employment law regarding
Equal Pay in the UK? (Doctoral dissertation, Cardiff Metropolitan University).
Aluko, O.A. and Azeez, B.A., 2019. Effectiveness of legal institutions in stock market
development in sub-Saharan Africa. Economic Change and Restructuring. 52(4).
pp.439-451.
Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
Boudreau, K., Nwakpuda, E. and Sauermann, H., 2019, July. New Ways of Funding Science and
Innovation. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 16806).
Briarcliff Manor, NY 10510: Academy of Management.
Daley, S.K. and et.al., 2019. Actionable business entity operating models to drive user interface
behavior. U.S. Patent 10,444,965.
Hale, A. and Booth, R., 2019. The safety professional in the UK: Development of a key player in
occupational health and safety. Safety science. 118. pp.76-87.
Miller, R.L., 2016. Business Law Today, Comprehensive. Cengage learning.
Partington, M., 2019. Introduction to the English Legal System 2019-2020. Oxford University
Press, USA.
Schipani, C.A., Milliken, F.J. and Dworkin, T.M., 2016. The Impact of Employment Law and
Practices on Business and Society: The Significance of Worker Voice. U. Pa. J. Bus. L..
19. p.979.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal system.
Routledge.
Thomas, M. and McGourlay, C., 2017. English Legal System Concentrate. Oxford University
Press.
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